California state officials have managed to spend $17B on it, I'd say the homelessness problem is working just fine for them. It sounds cynical, but this is what "managing," a problem in government means - extracting value from it. If you want less homelessness, you need fewer people benefiting from it. It's that simple. Government isn't about solving problems, it's about managing them to the benefit of the constituents who vote them back in.
Homelessness is encouraged by California policies that are essentially accelerationist, where they create the problem and exacerbate it to get the money and power to solve it, and then they've got something to manage indefinitely to keep getting those things. This is why you have a border crisis, and why your neighbourhoods have tent cities. Outside the cadre of people who think they will make up the central committee, few actually want unlimted centralized governments and policies when life is good and peaceful, so agitaing to make things much, much worse is how you get popular support to seize control and entrench your people. It's not a conspiracy, it's just strategy, and most people can't face that because they don't know what power is like, or understand what it means when they say it is the highest good. Homelessness is the symptom of a much deeper and more malignant social cancer, imo.